Board hunts options for universities

Short- and long-term spending cuts are on the table as governing-board members ponder budget woes.

Florida's public universities say their finances have been stretched so thin for so long that something has got to give. Today, they will discuss what that something might be.

The university system's governing board meets today at the University of Central Florida to weigh both short- and long-term spending cuts from a budget already labeled as inadequate. Among the measures under consideration: hiring freezes, bigger class sizes and even enrollment caps.

"We expect it to be a very serious and deep conversation," said Carolyn Roberts, the board's chairwoman.

University officials said the 17-member board will also discuss how to respond to a lawsuit filed Friday by a coalition of educators and taxpayers led by former Gov. Bob Graham. The suit seeks to give authority over tuition rates, now controlled by the Legislature, to the appointed board.

The lawsuit is just the latest in a series of events that have put the university system's finances under a spotlight.

Last month, the 11-campus system was rocked by Republican Gov. Charlie Crist's veto of a 5 percent tuition increase approved by the Legislature. At the same time, officials said, the budget failed to adequately fund the rapid, sustained growth of the 300,000-student system.

And now, a projected $1 billion shortfall in state revenues has prompted Crist to order all state agencies to identify possible budget cuts of at least 4 percent.

Gaining control over tuition -- which, at about $2,600 a year per undergraduate, is among the lowest in the country -- might generate more money. But board members, who are appointed by the governor and confirmed by the GOP-controlled Legislature, have been reluctant to challenge lawmakers -- or even lobby hard for more money.

Graham, a Democrat, led a referendum in 1992 that won passage of a constitutional amendment establishing the Board of Governors with broad authority over the university system's operations. But tuition authority is not explicitly listed in the amendment, and the Legislature has continued to assert its control.

Crist on Monday didn't take a position on the lawsuit, saying he sides with the state's constitution. But he cautioned that the ballot language isn't that clear. "I think it's a matter of interpretation of what that amendment says," Crist said.

Last month, the governor grudgingly allowed three of the state's research universities -- Florida, Florida State and the University of South Florida -- to raise their tuition as much as 15 percent a year. But he insisted that they not raise rates until 2008.

"It'll be five years before we gain the full benefit of [tuition increases]," said Steve Orlando, a UF spokesman. "This year we still have that gap to get through."

And in fact, though tuition issues have grabbed the most attention, tuition covers only about a quarter of the cost of educating an undergraduate. Most of the system's funds are appropriated directly by the Legislature.

Lawmakers approved $3.8 billion for 2007-08, an increase of about $200 million. But administrators say that's not enough to keep up with sharply rising costs and swelling enrollment.

As a result, individual campuses have been weighing immediate cuts.

Florida, for instance, announced a hiring freeze to help cover a $30 million budget gap for the coming year and may increase class sizes.

Florida Atlantic University in Boca Raton is projecting a $7.5 million shortfall, including the possible 4 percent cutback all state agencies are studying.

"Practically speaking, there is no way to absorb this kind of reduction and not have an impact on our key mission of educating the students," said Ken Jessell, vice president for financial affairs.